How to File a Semiannual EITC Application for the First Half of 2026: Eligibility, Payment, and Recovery

Applications for the first-half 2026 semiannual Earned Income Tax Credit will be accepted from September 1 through September 15, 2026. Eligible households are those in which both the applicant and spouse have only earned income in 2026. Before applying, applicants should check their combined 2025 gross income with their spouse, household members’ assets as of June 1, 2025, and an account in their own name.

Applications can be submitted through the National Tax Service Hometax menu under Incentives, Year-End Tax Settlement, and Donations > Semiannual Earned Income Tax Credit Application. Even if applicants have not received an application notice from the National Tax Service, they may apply directly if they believe they meet the requirements.

Key Requirements to Check Before Applying

All of the following conditions must be reviewed.

1. Type of income: Both the applicant and spouse must have only earned income in 2026.
2. Gross income: The applicant’s and spouse’s combined 2025 gross income must be less than the threshold for their household type.
3. Assets: The total assets of household members as of June 1, 2025, must be less than KRW 240 million.
4. Other disqualifying conditions: The household must not fall under any general Earned Income Tax Credit exclusions, such as nationality requirements or being another resident’s dependent child.

Gross Income Thresholds and Maximum Calculated Amounts by Household Type

The amounts in the table are annual maximums. The actual calculated amount varies depending on household type, total wages, and other factors, and a lower income does not always result in the maximum amount.

Household type is classified based on whether the household has a spouse, dependent children, or direct ascendants, as well as the income levels of the applicant and spouse. Detailed criteria should be checked on Hometax. A household with a spouse may be classified as either single-income or dual-income depending on each spouse’s total wages and other factors, so applicants should verify the household type shown on Hometax.

Items Included in Assets

The total assets may include the following items owned by household members.

• Homes, land, and buildings
• Passenger vehicles
• Jeonse deposits and rental security deposits
• Financial assets such as savings and installment savings
• Securities and membership rights
• Rights to acquire real estate

Liabilities are generally not deducted when calculating assets. The reduction thresholds and payment rates based on total assets should be checked in the Hometax guidance for the applicable year.

How to Apply Through Hometax

1. Check the Type of Income

Check whether the applicant or spouse has any income other than earned income in 2026, such as business income or religious worker income. Do not base the determination solely on whether a business is registered; use the income information that will actually be reported.

2. Prepare Household, Income, and Asset Information

Checking the following information in advance can reduce application errors.

• Household composition according to resident registration and spouse information
• Combined 2025 gross income of the applicant and spouse
• Assets held by each household member as of June 1, 2025
• A means of identity verification
• An account number in the applicant’s name for receiving the credit
• The individual authentication number, if an application notice was received from the National Tax Service

3. Access Hometax During the Application Period

Access Hometax from September 1 through September 15, 2026, and go to Incentives, Year-End Tax Settlement, and Donations > Semiannual Earned Income Tax Credit Application. Those who received an application notice can review the prefilled information, while applicants who did not receive a notice can enter the information themselves and apply.

Notice recipients who have difficulty using the internet may use the official application methods shown in the notice, such as the National Tax Service’s automated telephone service. It is advisable to confirm the telephone number and eligible users again in the National Tax Service notice for the applicable year.

4. Review the Application Before Submission

Check the following items again before submitting.

• Whether any income other than earned income, including the spouse’s income, has been omitted
• Whether June 1, 2025, rather than the application date, was used as the asset reference date
• Whether jeonse deposits and financial assets were included
• Whether the account number and account holder information are correct

5. Check Receipt and Review Results

After applying, check Hometax to confirm receipt and monitor the review status. The estimated amount stated in the application notice is not the final payment amount. The National Tax Service determines eligibility and the payment amount after reviewing income and asset information.

Payment Amount and December Payment Method

The payment for the first half is calculated based on 35% of the estimated annual calculated amount. Amounts that pass review are scheduled to be paid by December 30, 2026.

However, the actual deposited amount may differ or payment may be withheld in the following cases.

• The total assets fall within a reduction range
• There is a statutory reason for deduction, such as allocation toward delinquent taxes
• The scheduled first-half payment falls under a payment-withholding threshold
• Collected income and asset information indicates a high likelihood of future recovery
• The application details differ from information verified by the National Tax Service

The semiannual application system does not finalize the credit based solely on first-half wages. It is an advance-payment and settlement structure in which a portion is paid first and then recalculated after annual income is confirmed.

Automatic Second-Half Application and 2027 Settlement

Applying for the first half of 2026 is treated as also applying for the second half of 2026, so the same household generally does not need to apply again for the second half.

The National Tax Service will verify the annual income and asset requirements for 2026 and settle the annual credit in June 2027.

• If the amount received in advance is less than the final calculated amount, the difference will be paid additionally.
• If the amount received in advance is greater than the final calculated amount, the excess may be recovered.
• If the final requirements are not met, the entire amount already paid may be subject to recovery.

If the applicant or spouse is found to have income other than earned income, such as business income, the household will be excluded from semiannual payment eligibility, and the application may be treated as a regular application and processed according to the regular review schedule. In this case, the settlement timing may differ from that of households making standard semiannual applications based solely on earned income.

Treatment When Business Income Is Also Earned

The semiannual application system is designed to allow households with only earned income to receive part of the credit in advance in line with when wages are earned. If the applicant or spouse also has business income or similar income, accurately calculating the credit before annual income is finalized is difficult, so the application is processed under the regular application method.

For example, even if the applicant receives only wages from a company, the household may not be treated as having only earned income if the spouse has business income. Applicants should also check whether money received from delivery, sales, or freelance activities was submitted as business income under tax law.

Having income other than earned income does not immediately eliminate eligibility for the credit. It means that, instead of receiving semiannual payments, the household will undergo a regular review after annual income is finalized. Final eligibility is determined based on all requirements, including gross income and assets.

Preliminary Checks to Reduce Recovery Risk

For the 2026 review, the collection of local tax assessment information will be moved forward, allowing the National Tax Service to withhold first-half payments in advance for some applicants who are expected to face recovery at settlement. Payment withholding does not immediately mean final disqualification. The final settlement will be based on subsequently confirmed annual income and assets.

To reduce the possibility of recovery, it is important to check the following before applying.

• The spouse’s types of income, including wages, business income, and religious worker income
• Changes in annual wages due to leaving a job midyear, changing jobs, or working for multiple employers
• Household members’ real estate, vehicles, savings, and jeonse deposits
• Differences between household members entered in the application and National Tax Service information
• Whether the estimated calculated amount has been mistaken for an already finalized payment amount

If the National Tax Service requests corrections or supporting information, documents explaining the facts must be submitted within the specified period. Required documents, such as lease agreements, wage statements, and family relationship records, vary depending on the reason for the request.

Records to Keep After Applying

Applicants should not stop after checking the application completion screen. It is advisable to retain the following records.

• Receipt number and application date
• Household type displayed at the time of application
• Income and asset details entered or reviewed
• Payment account information
• National Tax Service correction requests and submitted documents
• Payment determination and 2027 settlement notice

These records can help identify what information changed if the payment amount differs from the estimate or a recovery notice is received. In particular, it is safer to retain objective documentation of the asset reference date and the spouse’s type of income rather than relying solely on memory from the time of application.

Differences Between Regular and Semiannual Applications

Households with only earned income may review whether the semiannual or regular application method is available to them, but they cannot receive duplicate credit payments for the same income year.